Trump Media & Technology Group (NASDAQ: DJT) stock surged post-merger with Digital World Acquisition Corp. (DWAC), as it began trading under the new “DJT” ticker symbol Tuesday morning.
The merger between DWAC and Trump Media (DJT) received the green light from the shareholders of DWAC on Friday. DWAC stock saw a significant uptick on Monday following the announcement of its plans to debut under a new stock ticker on Tuesday. This upward momentum continued as the combined company commenced trading on Tuesday.
Trump Media’s stock, now trading under a new ticker symbol that matches the former president’s initials, closed Tuesday up 16.10% at $57.99. It spiked as much as 59% to $79.38 earlier in the day.
Former President Trump, a top stakeholder in Trump Media, owns around 80 million shares in the company. The value of his holdings, estimated between $3 billion and $4 billion at the time of the merger announcement, is expected to surge even further following the first day of trading on the Nasdaq.
The merger plans of Trump Media, the parent company of the social network Truth Social, with the blank check firm DWAC, first came to light in October 2021. However, these plans hit a roadblock as regulators investigated potential investor misinformation regarding the talks between DWAC and Trump Media before going public.
The company has yet to declare any alterations to the merger conditions. The original terms include a six-month lock-up period, preventing key stakeholders, including the former president, from selling their shares.
Some people view the public offering plans of Trump Media as a strategy to strengthen the financial position of Trump. The likely Republican presidential candidate is facing increasing legal costs and penalties, potentially amounting to hundreds of millions of dollars, due to ongoing legal battles.
Trump Media (NASDAQ: DJT) Stock Performance
DJT stock surged 16.10% to close at $57.99 on Tuesday. The traders had exchanged hands with 54,249,645 (54.24 million) shares compared to the average daily trading volume of 3.86 million.
